Extreme Networks’ new partner programme is “20% more profitable” than that of its competitors, at least according to early partner feedback, its global channel boss has asserted.
The networking vendor last week unveiled ‘Partner First’, which it claims will offer its 6,000 global partners more predictability than the previous regime.
Extreme partners will now know their rebate percentage “down to the SKU”, according to SVP of Global Channels Joe Spencer.
“Based on what [the partners] are sharing with us and data around deal specifics, it’s looking like our programme is 20% more profitable than what they’re sharing with us from their competitors,” he told IT Channel Oxygen.
Extreme’s previous programme would only have offered a similar profitability advantage in the event the partner earned their rebate, said Spencer – who acknowledged this wasn’t always previously the case.
“Previously, partners weren’t always assured of a rebate – they couldn’t always map that out, and it was unpredictable,” he said.
“Whereas in the new programme, it’s very predictable.
“You know what the rebate percentage is, down to the SKU you sell, provided you maintain your certifications throughout the period. You know what you’re going to earn on day one, and in the last day of the period.”
Extreme’s front-end incentives have also been tweaked, with deal reg opportunities now classified as either ‘partner sourced’ or ‘teaming’, depending on whether they originated with the partner or Extreme.
“It was also a bit nebulous for partners. Now with our new programme launch, it is crystal clear and behavioural based,” Spencer said.
“We’re going to see an increase in the number of partners”
Despite saying consolidation means the size of the global partner base is shrinking, Spencer predicted the launch of Partner First will spur an increase in Extreme’s top-level partners.
Claiming to conduct 94% of business through the channel, Extreme currently has 550 Gold, Diamond and Diamond Elite partners globally.
The UK plays host to one Diamond Elite, 16 Diamond and nine Gold partners, as well as a further circa 300 authorised/strategic partners.
“I feel very confident telling you that we’re going to see an increase in the number of partners who now want to become Gold, Diamond and Diamond Elite, for the primary reason that they will earn more money through our rebates based on their certification level,” Spencer said.
“We’re estimating as many as 30 additional Gold partners just in the first six months. And we are seeing an increased number of Gold partners wanting to become Diamond, just because the rebate structure is so much more advantaged to them.”
“We can give clarity”
Partner First’s debut came just days ahead of the big launch of Cisco’s 360 partner programme, which aims to reward partners less for simply reselling and more for the value they can add around the customer lifecycle.
Are there any similarities in the thinking?
“I’m not going to speak directly to my competitor, but I think all vendors are trying to move up the value chain,” Spencer responded.
“We want our partners to shift their value so that it produces an exemplary customer outcome.
“For example, we have what I think is an industry leading fabric with our switching platform, and we want our partners to not only understand it, but also understand how fabric delivers those exemplary outcomes and creates more simplicity for their customers.
“Today, we don’t have a requirement in our Gold, Diamond and Diamond Elite certifications that requires them to be fabric certified. We’re building that in.”
With Cisco and HPE now dominating the networking skyline, where does Extreme win in the channel?
“We can give clarity on our products – Juniper and HPE still to this day will say they will sell Central as well as MIST,” Spencer said.
“And we will give clarity on whether or not we will partner. That means we will go to market with you hand in hand, and there is no ambiguity on whether or not we will pull the rug from under you and take a deal direct.
“If you think about our competitors, we can give clarity across all of those [areas], and I think that uniquely positions Extreme to build trust with partners for long-term growth.”
Doug Woodburn is editor of IT Channel Oxygen
